Union Pacific on Track to Save Fuel
Despite Increased Traffic
Source: GreenBiz.com
OMAHA, Neb., May 3, 2006 - Despite
rising fuel costs, Union Pacific says that it has reduced fuel costs
despite hauling 4% more materials than one year ago.
As fuel prices continue to rise, the pain at the pump is leading
consumers to look for ways to improve fuel economy. The same is true for
the nation's largest railroad. Imagine the cost of fueling a 4,000
horsepower vehicle with a 4,900-gallon tank.
Union Pacific, the largest U.S. railroad, fuels nearly 8,000
4,000-horsepower locomotives every day -- each with a 4,900-gallon tank
-- has embarked on an ambitious energy-efficiency effort. The result is
that Union Pacific was able to shave two percent off its diesel fuel
consumption during the first quarter of 2006 -- resulting in nearly $7
million in savings.
Among the railroad's initiatives:
Creation and deployment of the Fuel Masters program to reward
locomotive engineers for efficiently operating trains
Acquisition of newer, more fuel-efficient locomotives
Implementation of changes in traffic flow and operations to move
freight more efficiently.
"We all have a role to play in helping conserve fuel for our nation, and
Union Pacific employees are doing it every day," said Jim Young,
president and CEO, Union Pacific. "In a relatively short period of time,
our employees have made great strides in implementing and creating
world-class energy conservation techniques that are helping us to move
more freight while saving fuel. With their help we will continue to
improve our efficiency while delivering the goods America needs."
Last year, Union Pacific's Fuel Masters program saved more than 16
million gallons of diesel fuel and $30 million for the railroad. The
program has the potential to more than double the total amount of fuel
savings as it is refined and expanded. On average, service units using
the Fuel Masters program experience a five percent reduction in fuel
consumption.
Here's how it works: The fuel consumption performance of participating
locomotive engineers is compared against fellow engineers operating in
the same territory. (A two-month snapshot of each engineer's fuel
consumption performance is used to calculate individual average
consumption rates.) Each month, engineers in the top 15 to 20 percent of
each territory are awarded fuel cards to help them keep up with the cost
of filling up their own vehicle tanks.
"This is a truly great program for everyone," said Tim Brandt, a Union
Pacific locomotive engineer based in Marysville, Kan. "The fuel savings
make it an obvious winner for the company and it is nice the company is
willing to share some of those savings with us."
The creator of the Fuel Masters program was recently honored with the
2005 John H. Chafee Environmental Excellence Award. Wayne Kennedy, Union
Pacific's general director of fuel conservation, was presented the honor
for exhibiting outstanding stewardship of the environment. The award is
named for John H. Chafee, a four-term U.S. Senator from Providence and a
noted environmentalist.
In terms of fuel efficiency, railroads are three times more
fuel-efficient than trucks. If just 10 percent of the freight moved by
highway were diverted to rail, the nation could save as much as 200
million gallons of fuel each year. And, railroad fuel efficiency has
increased by 72 percent since 1980. Prior to 1980, a gallon of diesel
fuel moved one ton of freight an average of 235 miles. In 2001, the same
amount of fuel moved one ton of freight an average of 406 miles.
Overall, railroads and rail suppliers have reduced the weight and
increased the capacity of rail cars to improve fuel efficiency and
reduce emissions.
Studies also indicate the diversion of freight traffic from truck to
rail can reduce highway congestion. For example:
One intermodal train can take 280 trucks (equal to 1,100 cars) off
our already congested highways
Trains carrying other types of freight can take up to 500 trucks off
the highway.
A study of 50 major U.S. metro areas by transportation consultant
Wendell Cox found that the diversion of 25 percent of truck freight to
rail would lead, by 2025, to:
2.8 billion fewer traveler-hours wasted in congested traffic
A savings of 16 billion gallons of fuel
Nearly 800,000 fewer tons of air pollution.
"Union Pacific is committed to the development and use of new
technologies to preserve the environment for future generations," said
Young. "Environmental protection is a primary management responsibility
as well as the responsibility of every Union Pacific employee."
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